1. Enter Monthly Expenses

Input your estimated monthly expenses for each category in retirement. The calculator automatically shows yearly totals.

• Housing: Mortgage/rent, property taxes, utilities, maintenance, HOA fees
• Healthcare: Medicare premiums, supplemental insurance, medications, out-of-pocket costs
• Food & Groceries: Regular groceries and dining out
• Transportation: Car payment, fuel, insurance, maintenance, public transit
• Travel: Vacations, trips to visit family, leisure travel
• Entertainment: Hobbies, clubs, memberships, activities
• Miscellaneous: Gifts, personal care, clothing, emergency fund

2. Enter Social Security & Tax Info

Provide your age information and estimated Social Security benefit. You can get your personalized estimate at SSA.gov.

Enter your estimated retirement tax rate. Most retirees fall in the 10-22% bracket depending on total income.

3. Review Your Results

The calculator shows:

• Total Income Needed: Your expenses plus estimated taxes
• Social Security Income: Annual benefit based on your estimate
• Income Gap: Amount you need from other sources (savings, pension, part-time work)
• Savings Needed: Using the 25x rule (4% withdrawal rate), how much you should have saved

The 4% Rule (25x Rule)

A common retirement planning guideline suggests you can safely withdraw 4% of your retirement savings annually. This means you need 25 times your annual gap saved.

Example: If your annual gap is $20,000, you'd need $500,000 in savings (20,000 × 25).

Important Considerations

• Healthcare costs typically increase as you age
• Consider inflation - your expenses will likely increase over time
• Social Security benefits may be reduced if claimed before full retirement age
• Some expenses (like mortgage) may decrease in retirement
• This calculator provides estimates - consult a financial advisor for personalized advice